China Construction Bank has purchased a US$100 million stake in Russia’s VTB Bank, to expand its business in Russia after it set up a subsidiary in Moscow.

VTB completed a sale of its new shares to private investors and sovereign wealth funds from Norway, Qatar and Azerbaijan, raising approximately US$3.3 billion, giving Russia’s lender much-needed capital for expansion, despite weak market demand for it’s shares.

The deal for state-controlled VTB comes as the Kremlin’s push to sell off more state-owned assets is facing headwinds as Russian share prices are at their lowest levels since June 2012.

Three sovereign funds from oil-rich countries together bought over 60% of the new shares, in course of the deal. Norges Bank Investment Management bought more than US$500 million of shares, while Qatar Holding LLC and the State Oil Fund of Azerbaijan each bought about US$500 million of shares.

VTB Bank president and chairman of the management board, Andrey Kostin, said: "The agreement will not only bring relations between our banks to a new level but will also promote cooperation between our countries. China has traditionally been a strategic partner of Russia."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.